Client Alert

MoFo European Funds Playlist – Summer is Coming

14 Jun 2019

The MoFo European Private Funds Group knows you are busy, so we don’t waste your time. Below are the tracks we are listening to right now – and why they matter:

Pitch Perfect for Diversity

Diversity is a song that we all need to sing. Encouragingly, it appears that the private equity industry is taking steps in the right direction to increase diversity at both investor and manager levels, as described in this Bloomberg article and Coller Capital’s private equity barometer. However, much work still needs to be done to equalise as shown by this report by the BVCA, British Business Bank and Diversity VC . Now is the time to think about it and jump on board.

Tune in to the articles linked above for your easy listenin’.

Are You in Harmony?

The Financial Conduct Authority (“FCA”) has recently published their findings on a survey of principal firms in the investment management sector (including “Host AIFMs”), accompanied by a “Dear CEO” letter. These give voice to their concerns over principal firms’ implementation of their regulatory responsibilities over their appointed representatives, including in respect of risk management, internal controls and resources. The FCA will continue to assess the risks in this area and note that visits and enforcement action will be taken as appropriate.

Tune in to the report (here) and letter (here).

Working for the Weekend

The Department for Work and Pensions (“DWP”) issued a consultation in February 2019, setting out proposals for the expansion of investment opportunities and consolidation of defined contribution pension schemes. Interestingly, carried interest is referred to as a “performance fee”, which is “customary” for illiquid investments, such as venture capital and private equity. This, along with Her Majesty’s Treasury’s (“HM Treasury”) continual support for defined contribution scheme investments into patient capital, are early chimes of a potential shake up for our corner of the industry.

Tune in to the DWP consultation here and HM Treasury’s progress report here.

Bonus Track
To Be (Regulated), or Not to Be (Regulated)?

The FCA has published draft guidance on when crypto-assets may interact with the FCA’s regulatory perimeter.

Tune in to our overture on these here.

B-Side

In its latest Brexit policy statement, the FCA released its regulatory framework in the event of a no-deal Brexit. This includes revisions to the FCA handbook and binding technical standards, the envisaged temporary permissions regime and, practically, guidance on the use of FCA forms in a brave new world.

Tune into the FCA’s Brexit Policy statement here.

This season’s Funds anthem is:

David Bowie - Starman

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